Katanga Mining Ltd. was notified on April 20 that its joint venture partner, the Democratic Republic of Congo (DRC) state-owned La Générale des Carrières et des Mines (Gécamines), in the company’s 75% DRC-operating subsidiary Kamoto Copper Co. (KCC), has commenced legal proceedings in DRC to dissolve KCC following its failure to address its previously disclosed capital deficiency or, alternatively, if the court provides KCC with enough time to regularize the situation, to request the appointment of an expert to assess and report to the court on KCC’s financial position and the recapitalization plan. A court hearing was scheduled to be held in the DRC on May 8. The court may grant KCC a maximum period of six months to regularize the situation. The company believes it has several options to remedy the capital deficiency and avoid KCC’s dissolution.
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